Fidelity Investments Should Reconsider Its BTC Offerings After the FTX Collapse

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The US senators Richard Durbin, Tina Smith, and Elizabeth Warren have again called Fidelity Investments to review an offering comprising a Bitcoin-associated 401(k) retirement package. A letter was sent to Abigail Johnson (the CEO of Fidelity Investments) by the 3 senators recently. They reminded the receiver about the recent crash of the crypto exchange FTX to be the top reason for the firm to review its Bitcoin-based retirement saver offering.

US Senators Push Fidelity to Evaluate Its BTC Offering after the Crash of FTX

The senators added that many investment advisors, charismatic wunderkinds, and opportunistic scammers have actively participated in manipulating the Bitcoin (BTC) price, influencing the holders of the 401(k) retirement scheme associated with the Bitcoin product of Fidelity.

As per them, since July – when they formerly elevated concerns regarding the intensely concerning view of revealing workplace retirement strategy to Bitcoin – the asset’s value has dropped. Though the complete extent of the harm posed by the FTX exchange is continuously unfolding, the domino effect is being witnessed across the wider market of digital assets, and Bitcoin is also being influenced, in the words of the senators.

The letter of the senators to the CEO is 2nd during the recent months while the 1st was sent on the 26th of July this year. In that letter, the reason was asked behind the decision of Fidelity to get its consumers exposed to a BTC 401(k) product at the start. Warren, Smith, and Durbin also pointed out that approximately 32M people and 22,000 employees in the United States utilize Fidelity for retirement accounts as well as employer-sponsored plans.

The senators moved on to say that as a retirement security disaster is in advance moving on across the jurisdiction, it would not be suitable for Fidelity to expose the retirement savings of the consumers to a pointless risk. They specified that keeping in view the continuous caution indications and hazards, they push the platform to take the finest actions in the favor of plan participants and plan sponsors.

US Policymakers Support Crypto-Skeptic Senators

In the meantime, the US policymakers seem to have been favoring the 3 crypto-skeptic senators formerly. In May this year, Tommy Tuberville (a Republican Senator) proposed the Financial Freedom Act in front of the United States Congress, endeavoring to permit the citizens to incorporate crypto assets into 401(k) retirement strategy without any regulatory influence.


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